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Building a National Market 1 st Bank of US (BUS) expired in 1811 State banks issued notes 2 nd BUS: Charter for 20 years in 1816 Francis Cabot Lowell: 1 st mill for spinning and weaving Post War of 1812 Economic Problems: Britain flooded the US market with goods Hurt US economy Need for tariff(s) Tariff of 1816: Designed to protect American industries Protective tariff, not just a revenue tariff

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Building a National Market Cont. Transportation improvements Building of roads, canals, turnpikes, etc. Question: who should fund, federal, or state government? National Road: Cumberland, Maryland to Wheeling, Virginia Funded by federal government Calhoun’s internal improvements bill: Proposed for federal government to finance internal improvements “Let us, then, bind republic together with a perfect system of roads and canals.” Vetoed by Madison – believed Congress did not have authority to fund the project

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Expanding Westward After War of 1812, many Americans moved westward Fewer Native Americans, less threats Huge increase in population Need for more farmland out west Cotton, like tobacco, exhausted land, was a large cash crop Building of forts on the Mississippi River and Great Lakes Erie Canal - 1825 1821, Mexico gains independence US increases trade

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The “Era of Good Feelings” What is it? Huge increase in nationalism (Post-War of 1812) 1 political party rule (Democratic-Republicans) Attributed to Monroe’s Presidency, 1817 - 1825 Election of 1816: Continuing of the Virginia Dynasty Rufus King (Federalist) received 34 electoral votes Monroe chose JQA as his Secretary of State Goodwill tour through the US Florida: Seminole War: Invasion of Florida by Andrew Jackson Adams-Onis Treaty of 1819: US gained all of Florida in exchange for: US gave up its claim to Texas Spain gave up its claim to the Pacific NW

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The “Era of Good Feelings” Cont. Financial Panic: When in doubt, panics are caused by speculation (buying of a good in hopes of selling it at a higher price in the future) Panic of 1819: Overspeculation on land The BUS began tightening its credit and calling in loans Many state banks began to fail As a result of this depression, many Americans blamed the BUS

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Sectionalism and Nationalism MO Compromise: MO (part of LA Purchase) applies for statehood as a slave state This would make 12 slave states and 11 free Tallmadge Amendment: Proposed for gradual emancipation of slaves in MO South hated it, seen as a step towards ending ALL slavery The Solution? MO added as a slave state ME (from Massachusetts) added as a free state Balance stays equal at 12 states free, 12 slave Slavery prohibited above 36°30’ line in the future Impact of MO Compromise? Slavery would be the NUMBER 1 issue in national politics until the Civil War Helped lead to an increase in sectionalism

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Sectionalism and Nationalism Cont. John Marshall: 4 th Chief Justice During his reign, the national government became more powerful, at the expense of states Also, he helped improve the economy Dartmouth College v. Woodward: NH government tried to change the charter Daniel Webster (great orator, future senator) argued the case Marshall said a charter is a contract that could not be changed Cohens v. Virginia: Supreme Court can review state court decisions Again, federal government gains more power at states expense

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Sectionalism and Nationalism Cont. ***McCulloch v. Maryland*** (1819) Background: Maryland hated the BUS, tried to tax it Marshall and the court said the states could NOT tax a federal agency “the power to tax is the power to destroy” Essentially, the Supreme Court states the BUS is constitutional ***Gibbons v. Ogden*** (1824) Issue was with interstate trade (involving more than one state) Stated that only Congress could regulate interstate trade More power to federal government Worcester v. Georgia (1832) Stated Georgia could not interfere with Native land Decision was not enforced, Natives were forced to leave

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Sectionalism and Nationalism Cont. The Monroe Doctrine Written primarily by Secretary of State JQA Essentially warned Europe to stay out of Latin America US would consider any challenge as unfriendly In return, the US would stay out of European affairs Impacts: Short-term? Little to none Long-term? US would be the dominant power in the Western Hemisphere

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The Revival Opposition The “Corrupt Bargain”: 4 candidates for the election of 1824 None win an electoral majority, although Andrew Jackson has most electoral and popular votes According to the 12 th Amendment, the House would then decide on the top 3 candidates Henry Clay (Speaker of the House), finished 4 th and was out of the running He threw his support behind JQA Adams becomes president, Henry Clay becomes his Secretary of State Clay’s American System: Protective Tariffs, Internal Improvements, Bank of the US Jackson and his supporters were outraged Wooohooo, I’m guaranteed to become the next president! No? Too soon???